en.Wedoany.com Reported - In the first week of June, the magnesium market showed a trend of weakening first and then strengthening, with magnesium prices oscillating narrowly near cost lines. After starting a downward adjustment on May 26, the market continued its correction trend at the beginning of last week, with prices under pressure. The mainstream transaction price of ordinary magnesium ingots in the Fugu area of Shaanxi once fell to a low of 16,300 yuan/ton. Constrained by costs, factories showed a strong willingness to support prices. Traders and downstream buyers generally believed that the downside space for magnesium prices was limited. Coupled with the gradual release of contract fulfillment orders and restocking demand, market purchases at low prices increased. Since last Thursday, trading activity has notably rebounded, driving a slight recovery in magnesium prices last Friday.
As of June 5, the mainstream ex-factory cash price including tax for 99.9% magnesium ingots in Fugu, Shaanxi, was quoted at 16,400 yuan/ton, with no actual transactions at this level; factories in the Wenxi area of Shanxi quoted 16,550 yuan/ton, a slight increase of 50 yuan/ton from the previous period. Prices of magnesium ingots in other major domestic production areas followed suit with adjustments.
In terms of transaction conditions, after magnesium prices stabilized and stopped falling last Thursday, downstream purchasing enthusiasm significantly increased; after a slight price increase last Friday, the pace of downstream follow-up slowed accordingly. Factories, supported by costs, showed a strong willingness to support prices.
According to market research, a magnesium factory in Fugu quoted ordinary magnesium ingots at 16,400 yuan/ton, with no transactions at this level, and the factory has no plans to lower prices for sales. On the raw material side, dolomite prices have risen recently, and although coal prices have fallen somewhat, they remain at high levels, leading to a significant increase in factory production costs. The current magnesium price of 16,300 yuan/ton has dropped substantially to near the factory cost line, compared to the price of 15,500 yuan/ton in December 2025. Last Thursday, downstream purchases at low prices performed reasonably well. After prices rose slightly last Friday, purchasing willingness weakened, and merchants without restocking plans chose to wait and see. The current market supply is stable, with existing inventory in the midstream and downstream sectors. Overall demand is lackluster, and the supply-demand pattern is relatively loose. Industry insiders generally believe that magnesium prices lack sustained upward momentum, and the market is likely to continue oscillating narrowly in the short term.
From a supply-demand perspective, terminal demand has not shown a significant recovery, and there are no favorable factors to support prices. In the short term, the upside for magnesium prices is limited. Current magnesium prices are already approaching factory cost lines, compounded by increased difficulty in production operations due to high summer temperatures. Factories, relying on cost support, have a strong willingness to maintain prices. At the same time, rigid procurement demand provides a bottom-line support for the magnesium market.
Overall, the probability of further declines in magnesium prices is low. This week, the magnesium market is expected to remain generally stable with narrow price fluctuations. The focus will be on tracking downstream demand follow-up.
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